Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026 [Japanese GAAP] (Non-Consolidated)

Performance Overview

Net sales for the cumulative third quarter period of the fiscal year ending March 2026 were 201,846 million yen, a decrease of 20.8% compared to the same period last year. Operating income was 8,175 million yen (down 65.2% YoY), ordinary income was 9,536 million yen (down 61.6%), and quarterly net income was 9,399 million yen (down 44.3%). Product shipment volumes, sales prices, and scrap prices of key raw materials progressed almost as expected. While profits exceeded the plan due to reduced fixed cost burden from increased production volume, revenue and earnings declined year-on-year.

Financial Condition and Revision to Earnings Forecast

Total assets stood at 303,835 million yen, up 10,861 million yen from the previous fiscal year. Total liabilities were 85,140 million yen, an increase of 2,085 million yen, and total net assets were 218,695 million yen, up 8,776 million yen. The equity ratio rose 0.3 points to 72.0% compared to the previous fiscal year. The full-year earnings forecast was revised to net sales of 272,200 million yen (down 16.7% YoY), operating income of 8,200 million yen (down 72.8%), ordinary income of 9,800 million yen (down 69.0%), and net income attributable to owners of parent of 8,800 million yen (down 58.5%). Due to a challenging business environment caused by the Chinese economy slowdown, uncertainty in overseas steel markets, domestic labor shortages, and increased construction costs leading to reduced demand, the company will focus on profitability-oriented policies to improve earnings.